McDonald’s to permanently exit Russia
McDonald’s is to exit the Russian market after more than 30 years of operations in the country.
The fast food retailer has also initiated a sales process for the business.
The news follows McDonald’s announcement back in March that it had temporarily closed its restaurants in Russia and paused operations due to Russia’s invasion of Ukraine.
Explaining the decision to exit the country, McDonald’s said continued ownership of the business was no longer tenable or consistent with its values.
The company’s president and chief executive Chris Kempczinski said: “We’re exceptionally proud of the 62,000 employees who work in our restaurants, along with the hundreds of Russian suppliers who support our business, and our local franchisees. Their dedication and loyalty to McDonald’s make today’s announcement extremely difficult. However, we have a commitment to our global community and must remain steadfast in our values. And our commitment to our values means that we can no longer keep the Arches shining there.”
McDonalds will be looking to sell its entire portfolio of McDonald’s restaurants in Russia to a local buyer. This will include the process of “de-Arching” those restaurants, which will entail no longer using the McDonald’s name, logo, branding, and menu, although the company will continue to retain its trademarks in Russia.
